Information
Your brand is you
By Gerald B. Horn, Esq. and Lauren Perez
T imes are tough. Businesses throughout the world
are forced to find creative solutions to effectively
and uniquely market their goods and services. Apparel
manufacturers are not unique. They are not different.
The textile industry has evolved into a marketplace of
vendors, suppliers, factories and middle-men desperate
for a niche. It’s a marketplace where reputation counts.
Product quality, pricing, customer service, shipping and
delivery programs, vendor discounts, tariff adjustments,
return policies – all of these policies are fine and good.
But perhaps the most important question is: are you ef-
fectively marketing your brand?
What is a brand? Is Tiger Woods a poor man haunted by
human weaknesses…or is Tiger Woods simply a damaged
brand? Is AIG a financial conglomerate that took billions
of dollars from the American taxpayers because it had no
choice…or is AIG merely a damaged brand? Was Kathy Lee
Gifford an angry wife with a cheating husband who had
no idea her clothes were being made in sweatshops….or is
Kathy Lee Gifford the epitome of a damaged brand?
All companies, regardless of size, location or industry have
a brand separate and apart from real estate holdings, sup-
ply chains, political affiliations, business plans or balance
sheets. Small manufacturers producing only for private
labelers are a brand. Brokers and agents soliciting orders
from factories or arranging transport of finished goods
are a brand. Retailers are brands; warehouse owners are
brands; even lawyers and business consultant are, have
and market their brands!!
A brand is not just a logo – it is not just a name. It is who
you ARE as a business. It is the collection of every business
arrangement you have ever made, every piece of email any
of your employees have ever sent and every person anyone
in your organization has “friended” on FaceBook. And if
that brand is not sufficiently protected, the company can-
not and will not be profitable. Not in this current econom-
Sandler, Travis & Rosenberg, P.A. (ST&R) concentrates its practice on the
international movement of goods, ideas and services and the setting of global
trade policy. ST&R’s affiliated consulting company, Sandler & Travis Trade Advisory
Service (STTAS), is a leading provider of customs-related management and
consulting services to government and industry around the world.
1 canadian apparel federation | fédération canadienne du vêtement
ic climate and not in this competitive global marketplace.
Period and end of story.
So, let’s start with a simple 3-step rule:
1. A company must commit to fighting and protecting
its brand. To be the champion of all that it has built up.
To aggressively defeat the efforts of fakers, counterfeit-
ers, and scam artists determined to diminish the value
of your reputation. Publicize your efforts. Celebrate
those factory raids. Adopt a zero tolerance policy against
infringers and copycats. Engage with legislators, local
trade associations, customs officials and industry peers.
Do not merely complain that others don’t appreciate all
that you have already accomplished. Do not be satisfied
that the existing reach of your good will spans the globe.
Create a branding portfolio that protects your entire
supply chain, incentivizes your distribution partners,
and expands the scope of current and potential product
lines, both in genre and geography.
2. A company must not ignore global realities. The
marketplace is getting smaller. Borders are disappear-
ing. The Internet has caused the extinction of “small
entrepreneurs” and the “mom ‘n pop” shops. Free trade
agreements can actually save you money. There is actu-
ally something called tariff engineering. And regulatory
compliance is no longer merely an option. A company
does not exist in a cocoon; its every move may one day
be shown to the world on YouTube.
3. A company must recognize that it cannot be every-
where all the time; that it does not know everything
about everything. Do not be penny wise and pound
foolish. There are experts out there who already know
how to cost-effectively conduct international business.
People exist who can tell you ideas you haven’t even
thought about to help you protect your brand and cre-
ate measurable good will. These advisors are there to
help hone your image and protect your investments.
They already know how to create greater equity, manage
international supply chains, and comply with confus-
ing government regulations. Engage the experts. Get the
help you need.
February 2010
 Information
Consider counterfeiters. The whole world
seems to be focused on eradicating these
slimy businesses from their ever-growing
influence on international trade. In the
United States, for example, importers are
subject to IPR Audits. Customs and Border
Protection (CBP) performs these audits,
and CBP is determined to hold import-
ers responsible for even inadvertent entry
of infringing goods - even if these traders
merely import products bearing unrelated
third party private labels or trademarks. As
a result, an effective branding strategy for
any company doing business with a U.S.
importer depends upon a conspicuous
commitment to aggressively fight against
counterfeiters. This investment --- in what
may initially appear to be unnecessary
and costly litigation, police raids and/or
aggressive border enforcement measures
--- is absolutely critical. Successful brands
in today’s global marketplace must not
only protect shareholder equity; they must
also substantially mitigate, if not entirely
eliminate, any liability assumed by each of
its trusted trading partners.
And let’s talk about China. Everyone loves
to complain about China. But China is a
viable and oftentimes smart manufacturing
location. But do not expect China to protect
your brand just because it should or you
want it to. You must protect your brand in
China. Register your product lines, register
your copyrights, record those rights with
Chinese border authorities. If you are not
willing to make this investment in local
regulatory mechanisms, you are knowingly
showing your factories, associates, competi-
tors and even potential customers that your
brand is not worth protecting. That your
reputation is of such little value that you
are not even willing to invest in sufficient
national trademark registrations that would
provide better and more effective protection
against infringers.
And…DO enter into contracts with every
single one of your product or component
suppliers. DO personally inspect pro-
2 canadian apparel federation | fédération canadienne du vêtement
duction facilities to ensure they are not
violating international child labor laws or
employing harmful environmental hazards.
As a condition of purchase, finished prod-
ucts must not be counterfeit, infringing or
otherwise in violation of any national or in-
ternational regulations. Because here’s the
bottom line – if the factory is not willing to
enter into purchase order terms permitting
return and refund of violative or infring-
ing product and/or if the factory refuses to
reimburse for monies that may be lost in
the event a violation is discovered, then it’s
time to find another factory!
Counterfeit versions of your brand
damage you; they are of relatively little
consequence to an unrelated third party.
Clothing that exceeds permitted lead
limits or which presents unacceptable
risks of strangulation to your intended
purchasers, damages YOUR brand - but
may be of little consequence to a foreign
manufacturer outside the jurisdiction of
local regulatory enforcers. Sneakers made
by 10 year olds working 16 hour workdays
may reflect a factory’s ability to cheaply
produce your product line; but they also
reflect the harm that YOUR brand inflicts
upon the welfare of society’s children.
While it is absolutely true that contracts
are ultimately only as good as the paper
they are written on – without contracts, a
company has no protection at all. While
personal factory visits may appear to be an
unbearable cost especially when factories
can easily “clean up” for a single day’s
inspection – without these inspections, a
company has no control whatsoever over
the production of its own branded prod-
ucts. Without protection against infringing,
violative, harmful or illegally produced
goods or services, a brand is potentially
fatal and most certainly worthless.
And what if you are the factory? Demand to
enter into formal licenses that permit your
production of the branded goods. Verify
ownership of the brand. Ensure that border
CREDIT REPORTING
on Canadian Retailers
david@acacollect.com | 514 483-6223, ext. 239
enforcement mechanisms exist, are current
and specifically list your company as an
authorized user of the product name and
related intellectual property rights. If your
company’s products are seized at the bor-
der, future shipments from your factory are
likely to be delayed entry. They are likely to
be subject to more intense examinations.
The very possibility of being a “red-flagged”
shipper requires an effective branding
strategy which highlights your reputation as
a stickler for proper authorizations and li-
censes – and your insistence that all of these
will be on hand and verified even BEFORE
that very first garment is produced.
So, what is next on your “to do” list?
• Work within the industry, trade associa-
tions, governments and border officials
to cost-effectively protect your brand.
• Engage consultants to help acquire stron-
ger portfolios and navigate through the
constantly evolving international trading
environment.
• Invest in the success of your brand
through effective and transparent man-
agement and company policies.
The world has changed. It is no longer
sufficient to hope that offering the cheap-
est prices will survive the competition.
Whether or not you are Tiger Woods, AIG
or Kathy Lee Gifford, the lessons are clear.
Your brand IS valuable. Your brand IS
what potential consumers and colleagues
think about you. Your brand IS how you
are and will be treated by governments,
trading partners, suppliers, vendors and
even competitors.
Your brand IS you. n
If you would like further information about this
or if you have any questions about how it may
apply to your business, please do not hesitate
to contact Gerald B. Horn (ghorn@strtrade.
com) at (212) 883-1300 or Lauren Perez
(lperez@strtrade.com) at (305) 267-9200.
February 2010